More good news on inflation has bolstered stock markets today, with equities finishing off a solid November in an optimistic frame of mind, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Fed continues to win its inflation battle
It turns out that the surge in inflation was transitory, after all. Today’s PCE figures from the US will mean that Jerome Powell is now permitted to think about ticking off inflation from his 2023 to-do list. Having already rallied hard off the back of the CPI data a month ago, US stocks responded in muted fashion, but this November will go down as a very solid month for stocks on Wall Street.
FTSE 100 moves higher along with European markets
Fresh signs of weakening inflation in the eurozone gave stocks a lift on this side of the Atlantic too. In both cases, the effect has been to bring forward the expected date of the first rate cuts, providing more hope that 2023’s era of higher rates will be left behind in 2024.
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